Setback for John Lewis as department store chief steps down after less than three years in the job

Peter Ruis, the managing director of John Lewis, has stepped down from his role after less than three years in the position. Ruis, who joined the company in January 2024, will leave the department store chain to pursue new projects. His successor will be Will Kernan, a non-executive board member at John Lewis, who will take up the role in mid-September. Ruis will remain with the company until September 6, ensuring a smooth transition ahead of the critical peak trading season. Ruis was appointed by former chair Dame Sharon White just months before she was replaced by Jason Tarry. During his tenure, Ruis focused on modernizing the business, including revamping the iconic "Never Knowingly Undersold" promise and launching initiatives such as the Topshop brand within John Lewis stores, the Platter restaurant concept, and improvements to the online shopping experience. He emphasized that the company was now on a stronger financial footing following nearly three years of investment and transformation. The timing of Ruis’s departure coincides with ongoing challenges faced by John Lewis. The company’s parent group, the John Lewis Partnership, recorded a pre-tax loss of £21 million in the year ending January, compared to a profit of £97 million the previous year. This decline was primarily attributed to £120 million in one-time costs, mostly linked to the write-down of outdated technology systems. Despite these losses, overall underlying annual profits across the business rose by 6 percent. Sales at John Lewis increased by 3 percent to £4.9 billion, while Waitrose sales surged by 7 percent to £8.5 billion. John Lewis has also been grappling with operational changes. The company has initiated consultations on up to 200 redundancies, planning to close desk services for currency exchange in 30 stores and gift wrapping in 25 others. These closures, which are yet to be finalized, are expected to occur this autumn. In addition, the company has already reduced its workforce by 3,300 jobs, bringing the total headcount down to 65,700. Approximately 1,500 of these cuts came from John Lewis department stores. Recent decisions have further impacted the company. In February, the group announced the closure of its housebuilding division, abandoning plans to construct 1,000 homes across three locations. Over the past few years, several John Lewis stores have been shut, including locations in Birmingham, Croydon, Heathrow, Newbury, St Pancras, Swindon, Tamworth, and Watford. Despite these challenges, John Lewis managed to reward its employees in March by offering bonuses for the first time in four years. The company distributed a total of £35 million in bonuses, amounting to roughly one week’s additional pay for each of its 69,000 workers. This decision followed a rise in underlying profits, though external factors such as the US-Israeli conflict and rising oil prices have contributed to inflationary pressures, affecting both consumers and retailers. Jason Tarry, the current chair of the John Lewis Partnership, acknowledged the difficult trading environment in an internal magazine, warning of "really tough" conditions. He noted that the company must adapt to an unpredictable future, emphasizing the need for strategic adjustments. Tarry praised Ruis for his contributions, highlighting the energy and pace he brought to the transformation of the business. Kernan, who joins the company as managing director, brings extensive experience from his roles at River Island, The White Company, Wiggle, and New Look. As a non-executive director since 2023, he has gained familiarity with the operations and values of the John Lewis Partnership. Kernan expressed confidence in the company’s potential for growth, stating that he looks forward to leading the team to maintain John Lewis’s status as a trusted and beloved retailer.